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Tonya Vinas

Guide to Working with Vendors and Managing Your Supply Chain

Build long-term, collaborative relationships to increase competitiveness.


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Establishing and managing robust supply chains is a must for success in today's global manufacturing economy. Suppliers can make or break a manufacturer. A successful supply chain has these characteristics:
  1. All members benefit equally. To motivate suppliers to help reduce costs and increase sales, successful companies reward them with a fair share of savings or profits.
  2. A strong communication system. Whether it's notifications via e-mail, visual clues or even verbal cues, a strong communication system is must.
  3. Long-term commitment. Building relationships for the long haul means not abandoning a supplier because another company is slightly cheaper.
  4. Collaboration. Getting input from suppliers on new products, shipping, pricing, etc., reduces waste done the road.

Action Steps
The best contacts and resources to help you get it done

Choose the right partners


Which suppliers best serve your needs? Narrowing your list is the first step in successful supply-chain management.

I recommend: Get educated with articles and Web seminars from the Institute for Supply Management. Find suppliers via a directory from Supply & Demand Chain Executive Magazine.

Collaborate and communicate


Set up systems to ensure collaboration and communication. That means building in processes such as regular meetings, sign-off requirements, collaborative design systems, real-time inventory tracking, and even an onsite rep from your supplier.

I recommend: Use a tool from Industry Week Magazine to benchmark your supply-chain model against the best-managed plants in North America and copy what they do.

Focus on continuous improvement


Setting goals (i.e., cost reductions, improved delivery time, decreased warranty costs) and tracking performance will let you know if suppliers are continuing to bring benefit to your company.

I recommend: Choose how your supply chain will be measured. A variety of metrics exist – find them in the book Streamlined: 14 Principles for Building and Managing The Lean Supply Chain by Mandyam M. Srinivasan.

Tips & Tactics
Helpful advice for making the most of this Guide

  • Get outside help if you need it or don't have the time to manage your supply chain. Software vendors often provide consulting services along with their products.
  • Be aware that using overseas suppliers can have hidden complications such as added transportation costs, political disruptions, or varying compliance rules.
  • Even while focusing on ongoing continuous improvement via metrics and benchmarking, choose "spot projects" for improvement. For example, some manufacturers have built such trusting relationships with their suppliers that they no longer inspect incoming materials, which decreases costs and improves cycle times.

The official source of Working with Vendors and Managing Your Supply Chain is
the Supply Chain Management page at Business.com


Featured Vendors

Epicor SCM Product Suite for Mid-Market Manufacturers
Streamline operations with a single ERP solution. Synchronize orders and improve flow across the supply chain. Manage inventory and distribution.
www.epicor.com

SCM Software
Provider of supply chain management, shipment rating, fulfillment, package tracking and warehouse management software solutions.
www.cadretech.com

Software for Transportation Rating
Know what each shipment will cost, down to the penny, and how long it will take to get there. Learn more about SMC³ transportation pricing software.
www.smc3.com

On-Demand Inventory Software and Warehouse Management System
Easy to use and quick to implement Inventory and Warehouse Management. Unlimited users from $500 per month. Test Drive today!
www.SmartTurn.com

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 Related Resources from Business.com Back to top 
 Recommended Solution Providers Back to top 

The Supply-Chain Council is made of up global companies and has chapters in most parts of the world. The public section of this website has information on its Supply-Chain Operations Reference-model (SCOR) and links to software companies and consultants that support the model.

Titan Supply Chain can handle all of your SCM operations from ordering to inventory to delivery.

Supply chain consultants that balance planning with daily realities. They also offer SCM software and have links to other resources.

Netsuite offers software which manages the entire procurement process from requisition to purchase order to payment processes.


 Best Sites to Learn MoreBack to top 

The research institute Stanford Global Supply Chain Management Forum investigates the theory of global supply chain management and works to put best practices into action in the business world.

The online website of the magazine offers white papers, case studies and useful links about SCM. The magazine is geared towards executives who are responsible for their companies' supply chains.

CIO magazine's site has a special section devoted to SCM containing find information about trends, feature articles, news and an A-B-C guide to SCM.

The Institute for Supply Management is the industry association for the supply management profession. Visitors will find links to journals complete with articles on line, and information on conferences and their educational program.

In addition to information on the universities specialized program, the SCRC website offers a basic guide to SCM and links to useful websites.

Managing Automation describes itself as "an online and print resource for business and technology managers in manufacturing." The website has a section devoted to SCM and offers white papers, news and products.


  Best Blogs and Forums Back to top 

This blogger writes about what it takes to have efficient and effective supply chain management in emerging markets

Ehsan Ehsani covers issues pertaining to the supply chain management industry.

Helpful blog about supply chain management


  CommentsBack to top 

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